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Storebrand, a leading Norwegian financial services group worth more than $ 81 billion, lost 14% of its stock value on Wednesday morning after being a victim of a phenomenon known as 39, "finger finger" error.
The term refers to an incorrect keyboard or mouse entry that places a buy or sell order of a magnitude greater than expected, or that orders a bad badet or contract, or any another significant variation that would significantly distort the market results.
The Norwegian news platform Dagens Næringsliv announced that "due to a poorly seized sell order, the Storebrand stock price has fallen sharply, recording a fall of more than 14% a few minutes after the opening of the market. From an opening price of NOK 69.90, Storebrand's share price suddenly dropped to NOK 59.98, setting off an alarm at the Oslo Børs monitoring service, which subsequently suspended exchange of shares.
Costly error
According to Christer Berger, head of listings at Oslo Børs, the order in question was not entered correctly, which means that the decline in the course of action and the loss of wealth that The accompanying were purely accidental and did not result from any real market activity. Nevertheless, the consequences for investors have been very real: some shareholders have lost up to $ 250,000, while others with short positions on Storebrand shares may have won as much on the # 39; error.
On Wednesday afternoon, Storebrand's shares returned to value at a more reasonable rate of 66.94 NOK, down 1.56% from today's opening price. At the moment, the identity of the person responsible for the incorrect sales order remains unknown.
This is not the first major market situation in which investors have experienced significant losses or gains due to serious incidents. Deutsche Bank provided one of the best-known examples of the stock market, accidentally transferring $ 6 billion to a US hedge fund in June 2015, when a young employee dealing with a transaction mixed a gross figure and a net figure. The same bank also accidentally transferred 28 billion euros (about 35 billion dollars at the time) on one of its external accounts in April 2018, an amount greater than its total market value.
Could he arrive in crypto?
The incident raises questions for the cryptography market players, particularly because of the historical volatility of the badet clbad. In theory, a sufficiently large incident on a major cryptographic exchange could either mbadively pummel a cryptocurrency or make it work completely. If, for example, a crypto-whale using a gear mechanism such as the one proposed by BitMEX accidentally went into a sell order for a billion dollars of bitcoins, it could theoretically tip prices in no time .
In the case of stock exchanges, there is a mechanism to stop and cancel transactions caused by fateful incidents as long as they are reported within a certain period of time and, despite all their shortcomings, centralized encrypted exchanges may offer the same protection.
Selected image of Shutterstock
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